APCMA spokesman says increase in power tariff, imposition of duty on imports and restriction on trucks to load cement and coal according to approved axle weight would leave manufacturers with no choice but to pass on these costs to consumers
LAHORE: All Pakistan Cement Manufacturers Association (APCMA) spokesman urged the Federal Board of Revenue (FBR) to save the industry as Pakistan’s cement exports dropped 4.43 percent during July-October of current fiscal year as compared to the corresponding period of last year.
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During the first four months of the current fiscal year, the cement industry has posted 8.87 percent growth in local sales. The overall situation of the industry during this period showed a growth of 5.16 percent compared to the same period of the last fiscal year.
According to zonal-wise statistics, the north-based mills dispatched 6.872 million tonnes to the domestic market during July-October that was 10.4 percent more than the last year. However, the north zone exports declined to 1.742 million tonnes as compared to July-October trading of the last year.
In southern region, the mills dispatched 1.325 million tonnes to local market, while the exports showed a growth of 12.5 percent than last year and remained 1.048 million tonnes during July-October of the current fiscal year.
The APCMA spokesman said in his statement the government has increased excise duty on cement in budget 2014-15 and the impact is around Rs 2.5 per bag. He added that increase in electricity rates, imposition of duty on imports and restriction on trucks to load cement and coal according to the approved axle weight, would leave manufacturers with no choice but to pass on these costs to the consumers.
He also said that FBR Chairman Tariq Bajwa had assured the cement industry to make two zones, north and south, allowing separate MRPs for each zone but no action has been taken to implement the decision so far.
He said, “This is a very serious issue impacting growth of cement industry and resulting in high prices to the end user ultimately increasing the construction cost.”
